Sisira Builders

Sisira Builders (Pvt.) Ltd. had been a Construction Company of 32 years experience. It was awarded C 1 in Construction and C 3 in Water Projects by ICTAD. Their record of performance had been held in high esteem by its clients, mostly Banks, Government Institutions, Private Parties, etc. for their completing the work before targets. They had been very much involved in depending on outsourcing necessary machinery and other important requirements. However, they had not been making profits in the recent past due to lack of working capital and poor investments. This type of activities kept on narrowing their profit margin and ultimately they resorted to do subcontracts for their survival. To its credit there were no arrears of payment of EPF, Income Tax, etc.

It was at this point, the Chairman of Sisira Builders (Pvt.) Ltd. was brought to IRC (Pvt.) Ltd. We did an in-depth study of the Co’s financial position, the work in hand and the work that could be obtained through tenders. It was clear that the Company had no net assets and sufficient working capital to undertake any new work and to perform the work already in hand. The liability component of the Company was around Rs.200 m and they required another Rs.200 m working capital to complete the work in hand. They had only to their credit the C3 grading in Water Projects, with which the IRC (Pvt.) Ltd. was able to locate a proper investor to acquire the Company.

A water project costing Rs.2 bn was negotiated on the financial strength of the potential Investor who was agreeable to the proposal put forward by IRC (Pvt.) Ltd. to acquire Sisira Builders (Pvt.) Ltd. in the same manner in which Link Engineering (Pvt.) Ltd was acquired by Blue Ocean Group of Companies. The potential Investor was none other than Blue Ocean Group of Companies. Taking into consideration the work in hand and the impending Water Project, Blue Ocean Group of Companies acquired Sisira Builders Co. by absorbing the liabilities and paying Rs.60 m to complete the transaction. Today the Link Engineering (Pvt.) Ltd is still functioning as a Subsidiary Co. handling all construction projects and Sisira Builders (Pvt.) Ltd too functioning as another Subsidiary Co. handling all Water Projects. Both are doing well and making profits from day one (March 2014).